Biofuels: 'Irrational' and 'even worse than nonrenewable fuel sources'

The UK's "illogical" use of biofuels will cost drivers around ₤ 460 million over the next 12 months, a think tank states.

A report by Chatham House, external says the growing reliance on sustainable liquid fuels will also increase food costs.

The author says that biodiesel made from veggie oil was even worse for the environment than nonrenewable fuel sources.

Under EU law, external, biofuels are set to comprise 5% of the UK's transportation fuel from today.

Since 2008, the UK has required fuel providers to add a growing percentage of sustainable products into the fuel and diesel they provide. These biofuels are generally ethanol distilled from corn and biodiesel made from rapeseed, used cooking oil and tallow.

Deep fried fuel

But research performed for Chatham House states that reaching the 5% level means that UK drivers will have to pay an extra ₤ 460m a year because of the greater expense of fuel at the pump and from filling regularly as biofuels have a lower energy content.

The report say that if the UK is to meet its responsibilities to EU energy targets the cost to motorists is most likely to increase to ₤ 1.3 bn per annum by 2020.

"It is tough to find any great news," Rob Bailey, senior research study fellow at Chatham House, told BBC News.

"Biofuels increase expenses and they are an extremely pricey way to minimize carbon emissions," he stated.

The EU biofuel mandates are likewise having hugely distorting effects in the market. Because used cooking oil is considered among the most of biodiesel, the price for it has risen rapidly. Rob Bailey states that towards the end of 2012 it was more costly than refined palm oil.

"It produces a monetary reward to purchase refined palm oil, cook a chip in it to turn it into used cooking oil and then sell it at profit,"

"It is insane however the rewards are there."

There are also worries that taking EU land out of production to grow rapeseed oil in particular is creating more climate problems than it solves. The more fuel of this type that is put into vehicles the larger the deficit created in the edible oils market. This had actually resulted in increased imports of palm oil from Indonesia, often produced on deforested land.

"Once you consider these indirect results, biofuels made from veggie oils in fact result worldwide in more emissions than you would obtain from using diesel in the first place," stated Rob Bailey.

"Plus you are asking drivers to pay more for the fuel - it makes no sense, it is a completely illogical method."

Biofuel advantages

The European Biodiesel Board (EBB), which represents the market, external across the EU, said it understood the problems brought on by the required. But it thinks that biofuels have numerous positives.

"Blaming biofuels for all the difficulties on the planet is a bit too overstated," said Isabelle Maurizi, task manager at the EBB.

"It has brought great deals of benefits. It has enhanced the security of our diesel